Key takeaways
- The UAE has no federal minimum share capital for a limited liability company: the Ministry of Economy states that none applies unless the Council of Ministers issues a decision setting one (checked 6 October 2026).
- Federal Decree-Law No. 32 of 2021 requires a UAE LLC to have capital sufficient to achieve its purpose, so the share capital figure you choose has to be defensible for your business, not just the smallest number a licensing authority will accept.
- Free zones set their own rules: DMCC states a minimum of AED 50,000 for a free zone company (as of October 2026), ADGM lists no minimum for a private company limited by shares, and DIFC requires issued share capital greater than zero.
- Some activities carry their own thresholds: DMCC states that a general trading licence needs share capital of at least AED 1,000,000.
- Share capital sets what each owner puts at risk: under the Commercial Companies Law, each LLC shareholder is liable only up to the value of their shares.
AED 50,000: minimum share capital DMCC states for a free zone company (AED 1,000,000 for a general trading licence). Source: DMCC company setup FAQs, checked 06 October 2026.
Does a UAE company need minimum share capital?
For a mainland LLC there is no fixed federal minimum. The Ministry of Economy says the UAE does not require a minimum amount of capital for limited liability companies, and that investors specify the capital value in the company's articles of association. The exception: the Council of Ministers can issue a decision setting a minimum.
The law still imposes a test. Article 76(1) of Federal Decree-Law No. 32 of 2021 says a company must have sufficient capital to achieve the object for which it was incorporated, and that the capital is made up of shares of equal value. A licensing authority, a bank or a landlord can still ask whether your stated figure makes sense for the activity.
Federal Decree-Law No. 20 of 2025 amended the 2021 law, including rules on valuing non-cash contributions and on share classes for LLCs. Law-firm alerts differ on the date it entered into force (15 October 2025 or 1 January 2026), so confirm it in the Official Gazette.
How much share capital do free zones require?
Each free zone sets its own figure, and the range runs from nothing to AED 150,000 depending on the zone and the entity type. The table below lists the figures we could trace to an official or authority-published source.
| Authority | Entity type | Stated share capital requirement | Source and date |
|---|---|---|---|
| DMCC | Free zone company | AED 50,000 minimum; AED 1,000,000 for a general trading licence | DMCC company setup FAQs, checked 6 October 2026 |
| ADGM | Private company limited by shares | No minimum listed | ADGM entity types guidance, checked 6 October 2026 |
| DIFC | Private company | Issued share capital must be greater than zero | DIFC private company checklist, checked 6 October 2026 |
| twofour54 (Abu Dhabi) | Free zone company | No minimum | u.ae free zone page, checked 6 October 2026 |
| Dubai Airport Free Zone | FZ company | AED 1,000 | u.ae free zone page, checked 6 October 2026 |
| KIZAD | LLC | AED 150,000 paid-up | u.ae free zone page, checked 6 October 2026 |
| Hamriya Free Zone | FZE | AED 150,000 | u.ae free zone page, checked 6 October 2026 |
Figures for SHAMS, IFZA, Meydan and individual mainland licensing departments (Dubai DET, Abu Dhabi, Sharjah) were not confirmed from an official page for this article, so they're left out. Ask the authority for the current figure in writing before you pay for a package.
How much share capital should you actually register?
Pick a figure that matches your activity, your first year of costs and what a bank or partner would expect to see, then check it against the authority's minimum. A figure far below your planned spending can invite questions from a bank during account opening, though that's a practical point and not a statutory test.
Say a consultancy expects AED 600,000 of costs in year one and funds them from its owners' own money. Registering a token amount is allowed where there's no minimum, but the owners would then be funding the rest as shareholder loans or by increasing capital later. That's a hypothetical illustration, not a rule.
A larger figure has consequences too: it's the amount the shareholders commit, and a free zone or the Commercial Companies Law may require it to be paid or valued in a particular way.
Does share capital have to be paid in, and can it be non-cash?
It depends on the authority. DMCC states that the share capital must be deposited in the company bank account within 3 weeks of the trade licence being issued, and that the funds can then be withdrawn. Other authorities have different rules, and some licensing departments accept a stated figure without a deposit.
Capital doesn't have to be cash. Article 78(2) of Federal Decree-Law No. 32 of 2021 requires an in-kind contribution (equipment or intellectual property, say) to be valued at the contributor's expense by financial consultants approved by the competent authority. Under Article 78(4), if the asset was overvalued, the contributing partner pays the difference to the company in cash.
How do you work out the right share capital for your company?
Follow these steps in order, because the licensing authority's rule comes before your own preference.
- Confirm the licensing authority and entity type (mainland LLC, free zone company, branch).
- Ask the authority for its minimum share capital for your exact activity, in writing; general trading and regulated activities often differ.
- Check whether the figure must be deposited, and by when, on the authority's own guidance.
- List your first-year costs and decide how they will be funded: share capital, shareholder loan or revenue.
- Write the capital and each shareholder's shares into the Memorandum of Association, with shares of equal value.
- If any shareholder contributes assets instead of cash, arrange the valuation through an approved consultant before filing.
If you'd rather not track these dates by hand, the free UAE compliance calendar lists them for your company.
What most guides don't tell you
- A low stated capital can still be a problem. Where there's no legal minimum, the Commercial Companies Law's sufficiency test (Article 76(1)) and your bank's own onboarding questions still apply. Treat the registered figure as a number you may have to explain.
- Per-shareholder floors exist in some zones. The u.ae free zone page records DMCC as requiring AED 10,000 per shareholder on top of the AED 50,000 company minimum. Splitting ownership among several people can therefore raise the total required.
- Package prices can hide the deposit. A quoted setup price may exclude the share capital itself. Ask whether the figure is a deposit you keep access to (as DMCC describes) or a fee.
- Figures change. Authorities revise minimums, so a number quoted by an agent last year is a prompt to check, not a source.
Which deadlines apply to your company?
Once the company exists, share capital is a one-off decision but licence renewal, tax registration and filing dates run every year. The free UAE compliance calendar is a free calendar of your company's UAE tax and compliance deadlines, personalised from a few questions, as a PDF and calendar file.
Frequently asked questions
Does share capital have to be deposited in a bank?
It depends on the authority: DMCC states the share capital must be deposited in the company bank account within 3 weeks of licence issue, while other licensing departments may accept a stated figure without a deposit. Ask your licensing authority in writing.
What is a Memorandum of Association and what should it include?
The Memorandum of Association is the company's constitutional document. The Ministry of Economy says investors specify the capital value in the articles of association, and Federal Decree-Law No. 32 of 2021 requires the capital to be made up of shares of equal value.
Can I have multiple shareholders in a free zone company?
Shareholder rules differ by free zone, so confirm with the authority. The u.ae free zone page records, for example, that DMCC requires AED 10,000 of share capital per shareholder, which affects how much capital a multi-owner company needs.
Can a UAE company be owned by a foreign company?
Whether a foreign company can be a shareholder depends on the licensing authority and the activity, so check with the authority before you structure ownership. The capital rules above apply the same way: the figure must meet the authority's minimum, and any non-cash contribution must be valued by an approved consultant.
About Qawi
About Qawi · Qawi is a corporate services firm licensed in the Sharjah Media City (SHAMS) free zone, handling company formation, visas and PRO, bookkeeping, VAT and corporate tax for UAE businesses. Guides are researched from FTA, Ministry of Finance and free zone sources. Qawi on LinkedIn
Sources
- Ministry of Economy: No minimum capital required for limited liability companies
- Ministry of Economy: No minimum capital
- Federal Decree-Law No. 32 of 2021 on Commercial Companies (copy hosted by RAKEZ)
- u.ae: Starting a business in a free zone
- DMCC company setup FAQs
- ADGM guidance on entity types
- DIFC private company financial checklist
- Baker McKenzie: Recent amendments to the Commercial Companies Law No. 32 of 2021 (interpretation of Federal Decree-Law No. 20 of 2025, which states 15 October 2025 as the date it came into force; other law-firm alerts give 1 January 2026, so confirm in the Official Gazette)
Last checked: 06 October 2026
This is general information, not tax or legal advice for your specific situation.